Tuesday, June 5, 2007

European Bonds Little Changed Before ECB Meeting; Rate Increases Expected

(Bloomberg) -- European government bonds were little
changed amid speculation European Central Bank policy makers led
by President Jean-Claude Trichet will lift interest rates today a
quarter point and hint at additional increases.

Yields on two-year notes, more sensitive to interest-rate
expectations, are at a six-year high on concern the central bank
will have more to do to rein in inflation because economic growth
in the euro region is beating expectations. The bank will raise
its forecasts for inflation and economic growth, the Financial
Times Deutschland reported on June 4.


Read more at Bloomberg Bonds News

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